ST Lianluo Interactive issues a profit warning, expecting a net loss of RMB 260 million to 380 million in the first half of the year
Lianluo Interactive released its performance forecast for the first half of 2024, expecting a net loss of RMB 260 million to 380 million. Due to the impact of the Federal Reserve's policy and inflation, the growth of the US economy slowed in the first half of the year, with consumer spending decreasing, leading to a decline in the company's e-commerce business sales. Meanwhile, the advertising and media sector saw an increase in revenue but still incurred losses. The company is addressing its banking debt issues, with an estimated debt of about RMB 90 million
Intelligent Financial News APP News, ST Lianluo (002280.SZ) released the 2024 semi-annual performance forecast, expecting a net loss attributable to shareholders of the listed company of RMB 260 million to RMB 380 million in the first half of the year, and a loss of RMB 230 million to RMB 350 million after deducting non-recurring gains and losses.
In 2024, due to the Federal Reserve's policy of maintaining high borrowing costs over a longer period and the long-term impact of inflation, the growth of the U.S. economy slowed in the first half of the year, consumer spending was revised downward again, and spending trends were relatively weak. Due to insufficient consumer enthusiasm for electronic products leading to a decrease in demand, the company's e-commerce business sales, especially 3C/IT products, were adversely affected, with sales declining year-on-year; at the same time, Newegg increased employee expenses due to the issuance of restricted stock, resulting in some losses in the company's e-commerce business in the first half of the year.
In the first half of 2024, the advertising market demand rebounded, and the company's advertising media sector revenue increased by about 60% compared to the same period last year. In 2024, new large-scale integrated airports in Shenyang, Sanya, Guangzhou, and Qingdao were added. Due to the long incubation period and large investment in the new airport markets, the company's advertising media business still incurred losses in the first half of 2024.
The company is currently actively addressing bank debt issues, but due to issues such as overdue bank debt and litigation, based on prudence, the company has provisioned for estimated liabilities of approximately RMB 90 million for bank interest and penalties, which has a significant impact on current profits